Bank Loan Support Service

Today, small and medium business owners tend to seek financial support services, such as loans, to promote business growth. The loans will help support capital needs quickly, allowing SMEs to save time, access new opportunities and develop a competitive advantage in the market.

Most importantly, business owners need to understand the bank’s loan application processes, so that they can be well prepared when seeking financial support and increase their chances of success. We invite businesses and MVA to review the items to note when making a bank loan application:

1. Outline the purpose of a business loan

The first and not least important thing when applying for a loan, is that the business must clearly understand the purpose of the desired loan. Depending on the needs of the business, all loan purposes should be listed clearly and in detail, such as needing capital to purchase fixed assets, or expand a business, or simply to solve the problem of income. purchase raw materials and produce goods. Accordingly, businesses need to prepare a detailed business plan with relevant documents, a growth strategy or a specific business development plan that will help prove to the bank that they understand the business’s loan purpose. Karma.

2. Build a good credit history

One of the first things banks look at is the creditworthiness of the borrower and guarantor or track the payment history of debts. In Vietnam, banks will refer to credit reports from the national credit information center to check this information. Only credit information centers (CICs) approved by the State Bank of Vietnam are allowed to collect credit information about individuals and businesses. A credit report typically includes the following:

● All business credit transactions

Loan repayment status within the last 12 months

● Default information or can check the time the information is uploaded to CIC.

3. Proving the debt repayment ability of the enterprise

When reviewing loan applications, banks may also consider existing assets to determine if the business can afford to repay the requested loans. They also consider asking for more cash flow information to support the business’s expenses and debt commitments. The stronger the cash inflow, the more proof that the business can afford to pay on time and manage unexpected expenses. This will help build the trust of business loan approvers.

Banks also need to determine the financial position of the business. Always have timely financial statements ready to help your business avoid a last-minute rush when it comes to preparing documents for your loan application. Small and medium enterprises can refer to the use of online accounting tools to optimize the financial reporting process. In this step, if you use the services at MVA Accounting – Auditing company, businesses will be consulted and supported to make a “clean”, “beautiful”, “profitable” report.

4. Leverage collateral if required

The source of collateral will help prove to the bank that the business can guarantee the repayment of loans in the event of any incident. Common sources of collateral include real estate or equipment. In addition, goods in stock or unpaid commercial invoices can also be used as collateral.

Mortgage products in this category include loans to buy machinery, equipment, commercial vehicles or fixed asset investment loans. However, it should be noted that collateral requirements will vary depending on the type of loan product that the business applies for. In addition, the bank also has unsecured loan programs for online businesses. This type of loan helps small and medium enterprises reduce risks and barriers to market entry, manage cash flow flexibly and quickly to promote business development.

Using bank loans is an effective option to help small and medium enterprises overcome resource constraints and promote business growth. To get a successful loan, businesses should carefully study and prepare documents; Ensure compliance with the procedures and criteria required by the bank.

Understanding the increasing demand for loans of businesses, MVA develops a bank loan support service to help businesses connect and access capital in the fastest way. Contact MVA now for fast and best support!